Document background
The Share Transfer Certificate is a crucial document in Philippine corporate practice, required whenever ownership of company shares changes hands. This document is mandated by the Revised Corporation Code of the Philippines and must be properly executed to ensure a valid transfer of shares. It serves multiple purposes: providing evidence of the transfer, protecting the rights of both parties, ensuring compliance with corporate and securities regulations, and facilitating proper recording in the company's official records. The certificate typically becomes necessary during various corporate transactions, including private share sales, corporate restructuring, inheritance transfers, or investment deals. It must contain specific information required by Philippine law and may need to be accompanied by additional documentation such as board resolutions or tax clearances depending on the circumstances of the transfer.
